Based on what we've gathered, Cornerstone Asset Metals sells gold and silver bullion to people throughout the United States. However, we couldn't find much feedback online about the company, and what we did find is concerning.
Additionally, there seems to have been government action taken against the business. This may leave you wondering what happened and if working with the company is a bad idea. Let's talk about it.
Before we do, know that I'm HYPER transparent. My money is invested with Goldco's gold IRA services.
A Quick Look at Cornerstone Asset Metals
Cornerstone Asset Metals has been operating since 2009. Based on the company website, its founder is Terry Sacka, and the mission is to assist investors by connecting them with the products they need on the precious metals market to protect their savings. There is meant to be a feeling that the process of investing in retirement is easier than it would be otherwise.
It's no surprise that the founder is one of the company's biggest driving forces. He is certified in asset management, thanks to the completion of a specialized program that he undertook.
We also found out that you can hear some of his expertise in the precious metals industry from a podcast he hosts. The production tends to cover various elements of investing. What's interesting is that it pays attention to how the landscape evolves with time.
Cornerstone's website has a host of educational materials, which include a free gold guide that can be sent to those who want it.
Government Action Against the Precious Metals Investment Company
We opened a can of worms earlier, and it is probably best that we take the time to address it now. One of the major blemishes of the company is the fact that government action was taken against it. This took place in July of 2021.
You see, Minnesota's laws are pretty unique where bullion sales are concerned. Before a precious metals dealer begins to transact business, there needs to be a license received. Additionally, paperwork needs to be submitted to the Department of Commerce.
Allegations surfaced that the company had sold gold bullion without the proper paperwork being taken care of. Things only got worse when it was alleged that the company failed to submit information when a request for same was requested.
Cornerstone Asset Metals agreed to a payment of $10,000 in civil fines. This isn't the steepest fine ever, but it is sufficient enough to be a deterrent. Additionally, a $225 cost had to be paid in investigation fees.
It's not uncommon for a dealer of gold, silver, platinum, and palladium coins to find itself in trouble with Minnesota laws for these kinds of things. Sometimes, it's a matter of not knowing the registration process. Unfortunately for them, ignorance is not accepted as an excuse to break the law.
Cornerstone Precious Metals IRAs
Cornerstone Asset Metals allows its customers to open self-directed IRAs. Note that only this variety allows for assets, such as precious metals, to be used.
The process can be both tedious and confusing without the right guidance. To address this, there are advisors provided by the company that can be sought for assistance. Investors are meant to be able to get actionable feedback on which metals to purchase, as well as how much will be needed to meet whatever the retirement goals may be.
An authorization form must be signed, after which an IRA custodian will follow whatever instructions are provided for the deposit of the precious metals to be carried out on your behalf.
Purchasing Gold and Silver Bullion
If you're interested in buying Cornerstone bullion, there are different ways to do so. If the idea is to acquire the metals for your retirement account, you are allowed to fund the IRA with direct purchases.
Alternatively, you may be more interested in purchasing the precious metals for private storage, which means they would not be associated with an IRA. This is no issue, as the company offers delivery directly to customers when needed.
It's a good idea to check out the gold investment options on the website before committing to a purchase. While there will be information on the coins and bars available, a call will need to be made for more details on going through the purchase process.
How Does Precious Metals Storage Work?
The choice to venture into the world of precious metals represents a personal investment journey, which means that each person can approach it as they see fit.
How gold and silver are stored will depend on the approach that was taken to the investment. For example, if an IRA was selected, any associated precious metals cannot legally be stored privately. Instead, an approved depository must be used.
If the idea is to simply buy some bullion, then there is nothing wrong with choosing the most comfortable storage method.
Can Cornerstone Asset Metals Be Trusted?
This is where things can get a bit on the confusing side. Depending on where you look, what you may see about the company can be very different from what others may see.
In our experience, we have seen some notably concerning reviews across different platforms. For example, there is one customer who indicated that his lack of research caused him to be taken advantage of. Of course, this is inconsistent with a company that claims to prioritize educating new investors.
To make a long story short, the reviewer ended up being charged markups of up to approximately 18% when he bought silver from Cornerstone Asset Metals.
It also doesn't help that the Google score is one out of five stars.
Is the Company Considered a Scam?
Even with everything said above, the company doesn't seem to be a scam. If you browse Cornerstone's website, you will find pretty extensive information to clue you in on what to expect from the services and products offered. Still, we advise you to keep everything we have said about reviews in mind.
Surprisingly, we saw no complaints on the Better Business Bureau (BBB) website, though there is a notably negative review.
Additionally, there is currently no BBB accreditation at play. For reference, this may be an indication that there simply isn't enough information on the company. However, there is also the possibility that there is not enough confidence in the company's reputation to categorize the business as legitimate. Of course, that alone is not enough to say that the operation is below board.
Why Are Gold and Silver Investments Recommended?
Several upsides come with the decision to invest in precious metals. One of the first ones is how stable their prices can be during economic uncertainty. Therefore, they are often seen as the perfect hedge against inflation.
Additionally, their incorporation means that your portfolio is properly diversified. You do not want it entirely tied to equity or bonds.
The lack of a link to any one currency means that depreciation is very unlikely.
Are All Gold and Silver Coins Approved by the IRS?
Gold
Gold is the poster child for precious metals that are gravitated to by investors. Unsurprisingly, it stands as the most common one held in IRAs. While the different varieties are all good for negating the effects of an economic downturn, there is a high confidence factor in gold. Note that any coins or bars being used in an IRA must meet the purity standards set out by the IRS.
Silver
Silver is second in the popularity contest. Even so, it tends to be seen as a solid alternative to gold. It is more cost-effective, which increases its accessibility. Those who want portfolio diversification with a lower barrier to entry may want to go this route. As is the case with gold, the IRS sets out IRA purity standards for acceptable silver.
Platinum
While it is less common than the two aforementioned metals, platinum is more expensive than both of them. One of the drawbacks is that companies that purchase and sell the metal are not always easy to find. Again, IRS purity standards apply to those interested in IRAs.
Palladium
The least common IRA option is palladium. Finding a dealer can be a chore, and this also applies to attempting to resell holdings. The IRS-based purity standards are also applicable here.
Wrapping Up
We simply cannot recommend Cornerstone Asset Metals at this time. It may potentially be a solid, well-established company, but we simply cannot ignore the negative feedback that seems to be emerging from multiple avenues. The worst part is that there isn't much positive feedback to offset the impression given.
Our recommendation is that you work with another more well-reviewed company, as your experience is more likely to be a favorable one.
